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Home My WebLink About2016-035 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 16-35 APPROVING LAND ACQUISITION ESCROW AGREEMENT SADDLE CLUB 2ND ADDITION WHEREAS, the City (Seller) and Dupont Holdings, LLP (Buyer) entered into a Development Agreement and Planned Unit Development Agreement dated May 6, 2016, for the Saddle Club Second Addition; and WHEREAS, a condition of the Development Agreement is that Buyer acquire fee simple title to the following Property from the Seller in order to install road and utility improvements: The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota. ; and WHEREAS, Buyer seeks to commence utility and street work for the Saddle Club Second Addition prior to the completion of the transfer of title of the Property from Comcast to the City; and WHEREAS, the City is willing to allow the utility and street work to commence provided that Seller and Buyer enter into this Escrow Agreement requiring the deposit of the Earnest Money for the acquisition of the Property. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes: That the Land Acquisition Escrow Agreement, attached hereto as Exhibit A, is hereby approved and the Mayor and City Clerk are authorized to execute the agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this 9th day of May, 2016. The motion for the adoption of the foregoing resolution was introduced by Council Member Kusterman and was duly seconded by Council Member Maher and upon vote being taken thereon, the following voted in favor thereof: Kusterman, Maher, Rafferty, Manthey, The following voted against same: none ATT Bartell, City C -rk Jeff Reinert, CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: May 9, 2016 TOPIC: Consider Resolution No. 16-35, Approving Land Acquisition Escrow Agreement, Saddle Club VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council approval of an escrow agreement for land acquisition with Dupont Holdings, LLC. BACKGROUND On April 11, 2016 the City Council adopted Resolution No. 16-13 approving the development agreement for Saddle Club 2nd Addition. The agreement was contingent on the Developer and City entering into a purchase agreement for land necessary to construct the Fox Road connection to Foxborough. While the agreements have been prepared the City is still working to complete acquisition of the property from Comcast. We expect this to be complete within the next three to four weeks. The Developer, however, has requested approval to commence installation of public utilities in Saddle Club 2nd Addition. To facilitate this request, the City Attorney has drafted an escrow agreement that would provide for a $100,000 deposit to secure the land acquisition. The City would hold the deposit in escrow until the acquisition is completed. RECOMMENDATION Staff is recommending approval of Resolution No. 16-35. ATTACHMENTS 1. Resolution No. 16-35. EXHIBIT A LAND ACQUISITION ESCROW AGREEMENT Dupont Holdings, LLC This Agreement is entered into on May , 2016, by and between City of Lino Lakes, a Minnesota municipal corporation ("Seller"), and Dupont Holdings, LLC, a Minnesota limited liability company ("Buyer"). Recitals A. Seller and Buyer entered into a Development Agreement and Planned Unit Development Agreement dated May 6, 2016, for the Saddle Club Second Addition. B. A condition of the Development Agreement is that Buyer acquire fee simple title to the following Property from the Seller in order to install road and utility improvements: The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota. C. The Property is currently owned by Comcast CCH Subsidiary Holdings, Inc. and is, or will be, subject to a purchase agreement whereby the City will acquire the Property from Comcast. The Property is further subject to a separate Purchase Agreement between the City/Seller and Buyer for the purpose of transferring it to Buyer pursuant to the terms of the Development Agreement. D. Buyer seeks to commence utility and street work for the Saddle Club Second Addition prior to the completion of the transfer of title of the Property from Comcast to the City. E. The City is willing to allow the utility and street work to commence provided that Seller and Buyer enter into this Escrow Agreement requiring the deposit of the total Purchase Price for the acquisition of the Property. Escrow Agreement 1. The above Recitals are incorporated herein. 2. Upon execution of this Agreement, Buyer shall deposit with the Seller $100,000.00 in certified funds (the "Escrowed Funds"). The Escrowed Funds shall be deposited in existing City Accounts but tracked in City financial records as the Purchase Price for the acquisition of the Property. The Escrowed Funds shall not accrue interest while held by the City. 3. The City shall not invest or encumber the Escrowed Funds. The Escrowed Funds shall remain immediately available, subject to the terms of this Agreement. 4. The Escrowed Funds shall be held, returned or released to the Seller pursuant to the terms of the Purchase Agreement between Seller and Buyer. 5. Upon deposit of the Escrowed Funds, Buyer may commence utility and street work for the Saddle Club Second Addition in accordance with the Development Agreement. 6. This Agreement constitutes the entire agreement between the parties and can only be amended or modified by a written amendment signed by all parties. 7. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. CITY OF LINO LAKES By: Dated: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk Dupont Holdings, LLC By: Marcel Eibensteiner Its: Dated: Dated: